Terabeam, the one-time free space optics juggernaut that has lately been more focused on WiMAX, announced a first quarter net loss of $4.5 million, and first quarter revenue that was down 32% from the previous quarter.

That revenue figure was reported at $18.5 million, compared to $27.1 million for the fourth quarter of 2005, but still far higher than the $6.6 million for the first quarter of 2005. Since early 2005, the company has acquired the assets of Proxim Wireless, which were targeted to bring in new revenue, but also carried product development expenses. Our first quarter was a challenging quarter," said Terabeam CEO Robert Fitzgerald. "We experienced a greater decline in revenue than we had anticipated while at the same time incurring expenses to launch our WiMAX and municipal access network products. We look for those new products to contribute to our sales in the rest of 2006."

Terabeam also recently said it would explore strategic alternatives, including a possible sale, of its Ricochet Wi-Fi servive provider unit. Fitzgerald said the company wants to focus on Fixed WiMAX and millimeter wave radio products rather than services as the broadband wireless sector enjoys a resurgence.